Selling a business isn’t just a financial decision—it’s a turning point. Whether you built it from the ground up or took it to new heights, deciding to move on comes with a mix of excitement, uncertainty, and tough decisions. The process itself is complex, full of negotiations, tax implications, and strategic planning. And beyond the deal itself, there’s the question of what comes next.
At Solidarity Wealth, we’ve worked alongside entrepreneurs through every stage of selling a business, helping them navigate the numbers, the emotions, and the opportunities that come with a liquidity event. Today, I want to share the story of one business owner who was ready to step away but wanted to do it the right way—on his terms, with a solid plan in place for his future.
Facing Challenges and Getting a Head Start
When this business owner first came to us, selling wasn’t imminent, but he knew it was on the horizon. After years of building a successful healthcare company, he had seen others in his industry go through the process—some walking away with financial security for generations, others making missteps that cost them more than they expected. He wasn’t willing to leave things to chance. No investment banker had been engaged, and no deal was on the table. What he wanted was clarity—an understanding of how a sale would impact his wealth, his family, and his next chapter. More importantly, he wanted to prepare well in advance rather than scramble when the time came.
Starting early was vital. We helped him draw up a strategy to minimize potential income and estate taxes that would benefit him after the sale. A Nevada Trust was one of the first pieces we put in place. By transferring ownership of his business into this structure years before the sale, we helped shift income out of a high-tax state to a tax-free state and create an added layer of asset protection.
At the same time, we incorporated a Donor-Advised Fund, giving him a way to support causes he cared about while addressing capital gains. Given the complexities of his blended family, we collaborated with estate attorneys to refine his wealth transfer strategy, structuring it in a way that aligned with his long-term priorities.
From there, we built his team. We worked alongside his CPA to welcome an investment banker, a valuation firm, estate attorneys, and Nevada legal counsel as team members. Our office oversaw the entire team to keep efforts in alignment.
Dealing With the Emotions of Selling a Business
As most entrepreneurs can relate, after you’ve spent considerable time building a successful company, emotions are always high when it’s time to sell a business. Our client was no exception. He faced a wide range of emotions throughout the drawn-out process.
One deal that looked like a sure thing fell apart. Another buyer came to the fore but had issues of their own. These highs and lows are common to anyone trying to sell a business, but in the midst of the process, they can lead to a lot of uncertainty and tension.
One of the things we focused on was helping our client stay steady through the highs and lows. We talked through the realities of negotiations, making sure he understood that buyers will always try to adjust the numbers during painfully long due diligence processes and that it wasn’t a reflection of his company’s worth. We also helped him think through what life would look like after the business. He wasn’t someone who could sit still for long, and we knew that once the dust settled, he would need something to pour his energy into.
Structuring and Executing the Sale
When the sale was finally in motion, we worked to make sure it was structured in a way that aligned with his financial goals. The deal included a combination of cash, rollover equity, and an earnout tied to future business performance. Taking some payment in stock of the acquiring company allowed him to defer taxes and maintain an investment in the industry, while the earnout ensured that if the business continued to grow, he would benefit from that upside.
We then turned to his post-ownership life. We structured financial models that maximized his cash flow. At first, he was uncertain how to manage wealth outside of his business. After showing how he could still generate income from his assets to fund his future ventures and charitable causes, he gained clarity and became more comfortable with the deal.
After years of preparation, the business was sold in a deal that met both his financial and personal objectives. The tax planning we had put in place significantly reduced his liabilities, the transaction process was smooth thanks to the right team dynamics, and he left the business on his own terms.
Ready to Sell a Business? Work With Solidarity Wealth
At Solidarity Wealth, we don’t just step in when a deal is on the table. We work with business owners well in advance, helping them prepare for the financial, legal, and personal decisions that come with selling a company.
If a sale is in your future—whether next year or further down the road—let’s start the conversation. The sooner planning begins, the more flexibility you’ll have when it’s time to make a move. Reach out to us at info@solidaritywealth.com or call 385-374-1665 to schedule a consultation.
About Jeff
For over a dozen years, Jeff McClean has advised some of the country’s most successful families on all aspects of their wealth. With his background as a former tax and estate planning attorney at a prominent Houston, Texas, law firm, Jeff has advised clients through business sales, funding rounds, IPOs, complex tax and wealth planning transactions, private and public market investments, executive compensation packages, succession planning, and much more. In short, Jeff helps clients navigate the unique challenges that come with building wealth and helps them better predict their financial future.
In addition to co-founding Solidarity Wealth, Jeff advises single-family offices on a broad array of challenges. He also serves as the Managing Partner of Solidarity Capital, an income fund managed separately by the Solidarity partners.
Jeff is a sought-after thought leader on a wide range of tax, finance, and estate planning topics. Jeff has been quoted in Yahoo! Finance and Kiplinger’s, has published in diverse publications from Silicon Slopes magazine to the Taxation of Exempts journal by Thomson Reuters, and has spoken to audiences ranging from the Estate Planning Section of the Utah State Bar to the Nonprofit Organizations Institute to large company conferences.
Jeff holds a bachelor’s degree in accounting from Brigham Young University – Idaho and a Juris Doctor, with honors, from the University of Texas School of Law. Outside of work, Jeff is married and the father of three amazing children. He has also served as past president of the Salt Lake Estate Planning Council.
Solidarity Wealth is a registered investment adviser. This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Solidarity Wealth and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Solidarity Wealth unless a client service agreement is in place.
